The War between Russia and Ukraine and its Impact on Bangladesh: A Comprehensive Study

Abstract

This comprehensive study investigates the impact of the ongoing war between Russia and Ukraine on the Bangladeshi economy, focusing on various dimensions including trade disruptions, energy and commodity price shocks, remittances, foreign direct investment (FDI), macroeconomic stability, and daily commodities. Drawing on an extensive literature review, the study synthesizes existing research on the economic consequences of geopolitical conflicts, with particular attention to the multifaceted effects of the Russia-Ukraine war on indirectly involved countries like Bangladesh. The analysis reveals that the conflict has led to significant challenges in areas such as trade, energy and commodity prices, remittances, FDI, and macroeconomic stability, with potential consequences for the Bangladeshi economy, including slowed growth, increased inflation, and currency fluctuations. Furthermore, the study highlights the impact of the conflict on the prices and availability of daily commodities, which can affect the cost of living, purchasing power, and overall quality of life. Based on these findings, the study offers recommendations for policymakers and stakeholders to adopt strategies that mitigate the adverse effects of the conflict, promote economic resilience, and ensure the well-being of the population. This study contributes to the understanding of the economic implications of geopolitical conflicts and serves as a valuable resource for policymakers, researchers, and practitioners interested in the broader effects of the Russia-Ukraine war on global economies.